The economic stimulus plans launched by governments to tackle the so-called “financial crisis” of  2008 led to aggravated deficits and debt.

In the EU, governments are heavily indebted. In most cases, they can fund their debt only through new borrowing. Default is possible for some of these governments within a few years.

The fiction of the eurozone as a viable currency area could be maintained in the first years because the world economy was not encountering major problems.

It becomes increasingly obvious though, that deep competitiveness differences separate the European countries. Such differences make it impossible for the euro to last unless employment and growth are sacrificed in those countries that are the less competitive.

We favor an orderly return to a renewed version of the European Monetary System  (EMS) that was into force before the euro. An EMS allows to negotiate currency adjustments. It is able to correct the competitiveness gap between the different economies without destabilizing the single market.

This would support employment and growth in the less competitive countries.